tamp duty land tax – A tax on the acquisition of interests in UK land including houses, flats, other lands, and on both the grant and assignment of leases.
The purchaser is responsible for the payment of the tax and filing of the land transaction return, although is normally done by their solicitor on their behalf. The return should be filed within 30 days of the transaction. The 30-day filing window expects to be reduced to 14 days in respect of land transactions with an effective date on and after 1 March 2019.
SDLT is payable whether or not the parties to the transaction are based in the UK and whether or not a document is used. The consideration on which SDLT is paid is money or money’s worth and where consideration is contingent it is payable on the assumption that the contingent consideration will be payable.
SDLT is also charged on any VAT included in the transaction.
Types of Stamp Duty
There are three types of Stamp Duty:
- Stamp Duty Land Tax (SDLT) – which applies to land transactions
- Stamp Duty Reserve Tax (SDRT) – which applies to sales of securities on the stock market; and
- Stamp Duty – which applies to the sale of shares and securities.
In all cases, the purchaser must pay the duty based on the price paid or value if not paid in cash.
Who is classed as a first-time buyer?
A first-time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.
First time buyers purchasing property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.
The relief must be claimed in an SDLT return.
How We Can Help You
For further information on any type of First Time buyer, Stamp Duty Land Tax please contact us.